Home for the holidays for Hevesi in pay-to-play pension case

Former state comptroller wins parole after 19 months in state prison

Updated 9:11 pm, Thursday, November 15, 2012

Photo: SKIP DICKSTEIN

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Former New York State Comptroller Alan Hevesi stands in front Albany County Court Judge Stephen W. Herrick in the Albany County Courthouse in Albany, New York February 9, 2007. (Skip Dickstein / Times Union archive) less

Former New York State Comptroller Alan Hevesi stands in front Albany County Court Judge Stephen W. Herrick in the Albany County Courthouse in Albany, New York February 9, 2007. (Skip Dickstein / Times Union ... more

Photo: SKIP DICKSTEIN

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Alan Hevesi, former comptroller of the state of New York, is see in this undated handout photo provided to the media on Tuesday, April 19, 2011. Hevesi, 71, the highest-ranking official convicted in an investigation of corruption at the pension fund of New York state, was sentenced to a minimum of one year by State Supreme Court Justice Michael Obus in Manhattan. Source: New York State Department of Correctional Services via Bloomberg EDITOR'S NOTE: EDITORIAL USE ONLY. NO SALES. less

Alan Hevesi, former comptroller of the state of New York, is see in this undated handout photo provided to the media on Tuesday, April 19, 2011. Hevesi, 71, the highest-ranking official convicted in an ... more

Home for the holidays for Hevesi in pay-to-play pension case

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ALBANY — Former state Comptroller Alan Hevesi, whose precipitous fall from power was one of the major scandals to hit state government in recent years, will be out of prison in time for the holidays.

Hevesi, 72, was granted parole after a hearing Wednesday at the Mid-State Correctional Facility in Oneida County. After his scheduled release on Dec. 19, he's expected to return to his home in Forest Hills, Queens.

"He served 19 months and did so without complaint and lament and accepted responsibility and is anxious to go home and see his family," said Bradley Simon, Hevesi's lawyer.

But Hevesi's longtime adviser, Hank Morris, was refused parole, with officials saying they feared he might commit more crimes if he was let go. Both decisions were announced Thursday.

Hevesi pleaded guilty in 2010 to official misconduct, a low-level felony, in connection with taking gifts from those seeking investments from the vast state pension fund, over which the comptroller is sole trustee. Venture capitalist Elliott Broidy accompanied Hevesi on trips to Israel, where he picked up the tab for numerous amenities.

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"Your statement of remorse for damage caused to the state of New York, the Office of State Comptroller and its employees is acknowledged," Parole Board member Kevin Ludlow wrote in the decision to grant parole.

The two other board members who saw Hevesi during his hearing on Wednesday were William Smith Jr. and Michael Hagler. Hevesi will be on parole until April 2015.

Board members also acknowledged Hevesi has health issues and concluded that he was unlikely to commit any more crimes.

Hevesi has previously been described as a model prisoner and, in a hearing a year ago, said he worked as a window washer on his ward, cleaning dozens each day.

Hevesi will have to report to a parole officer and cannot associate with the three others who were convicted in the pay-to-play pension case: Broidy, Morris and David Loglisci, who was the state pension fund's main investment officer.

Loglisci was sentenced last year but served no prison time; Broidy is set for sentencing Nov. 26, the attorney general's office said.

"It's up to the judge," Broidy's lawyer Christopher Clark said of what he expects to happen.

Transcripts of Wednesday's parole hearing weren't immediately available but last year the former comptroller admitted guilt in the pay-to-play case.

He also said he had accepted from Broidy numerous extras during trips to Israel to explore investment opportunities. While the state pension fund paid for most of the trips, Hevesi said Broidy had picked up other costs, such as meals. Accepting any payment was "moronically stupid," Hevesi said.

The former comptroller also accepted campaign contributions.

Morris, Hevesi's longtime political adviser, enriched himself by charging hefty fees for connecting companies that wanted to do business with the pension fund.

According to state records, Morris is in Hudson Correctional Facility on a securities fraud conviction; as with Hevesi, Morris' maximum sentence is four years. His next parole hearing is scheduled for August 2013.

Morris earlier agreed to pay back $19 million he got through the placement fees. Broidy had also agreed to return $18 million in management fees.

Parole board members who met with Morris in Hudson on Wednesday said they didn't believe he would stay out of trouble if he was paroled, largely because he had asserted that he didn't understand his own state of mind while he was bringing in the placement fees.

"If released at this time there is a reasonable probability that you would not live and remain at liberty without again violating the law," stated the board's denial letter.

The pay-to-play scandal led to a ban on the use of placement agents for the pension fund and restrictions on donations by those seeking investments.

Hevesi had received nine letters in support of parole and one against, prison officials said. Even those who had battled him in the campaign arena thought he had spent enough time in prison.

"I don't think he's a threat to society," said Chris Callaghan of Waterford, a Republican who challenged Hevesi in 2006. He was among those who started the inquirey by saying Hevesi had been using a state employee as a chauffeur for his ailing wife. That led to Hevesi's resignation in late 2006.

Hevesi will continue to draw a state retirement pension of $105,000. While lawmakers as well as current Comptroller Tom DiNapoli have offered legislation that would strip felons of their pensions for crimes related to their public service, the payments are constitutionally protected.